46. Match each term and its definition:

A. Compounding 1. Cash value of the investment at some point in the future

B. Periodic compounding 2. Interest earned on only the original principal borrowed

C. Present value 3. A series of periodic payments of equal amounts

D. Future value 4. The present value of $1 future cash flow given a period and a rate

E. Annuity 5. Interest earned on both principal and previous interest earned

F. Perpetuity 6. Process of accumulated interest

G. Payment 7. The present value of $1 annuity payment given a period and a rate

H. Interest rate 8. Current value of future cash flows discounted at appropriate rate

I. Simple interest 9. Interest compounded more often than once a year

J. Compound interest 10. A special case of annuity with cash flows that continue forever

K. Discount factor 11. Or discount rate, is percentage return made on investment

L. Annuity factor 12. The dollar amount of periodic cash flows in an annuity